There are many reasons why you might want to make an online money transfer overseas to family or friends. Perhaps you are sending some of your earnings back home. You may be sending money to help someone facing a medical emergency, or studying abroad.
Whatever the reason you are sending money, it’s important to do it safely. To avoid scams and overpaying, here are the main steps to send money to family abroad.
Use a reputable provider
In an ideal world, scammers would always be caught out. But with foreign exchange fraudsters now using a wide range of sophisticated techniques to trick their users, there’s more reason than ever to be cautious.
Reading reviews is one way to at least begin to check the veracity of any claim made by a money transfer provider. Looking them up on a registry of licensed money services providers in your local jurisdiction is also wise, as it can quickly throw up any red flags that you may not previously have been aware of.
If the money transfer provider is regulated by an official financial body, you can rest assured that they are a legitimate company.
Avoid big fees
Some unscrupulous online money transfer provider will try and charge the earth, even if you’re only making a small cross border payment. Bank transfers often charge a percentage of the total transfer too, so this is not the most cost-effective way to send money to family.
The market is full of providers that provide cheap fee structures. Usually, the best way to find out how much a company will charge you for transfers is to read online reviews that collate information on both published and hidden fees. By comparing money transfer providers, you can see which option best suits you.
Don’t forget rates
When you send money abroad, there are two types of fee you’ll often have to pay in addition to the money you’re actually sending. One is the margin added by the provider, and the other is the exchange rate. This rate will convert the money from your currency into that of the destination country, so if the exchange rate isn’t in your favour, it will be “absorbed” into your payment rather than charged separately – or, in other words, your recipient will simply receive less.
If the interest rate isn’t in your favour, it may be a good idea to hold off on your payment until the interest rate becomes more favourable. In cases where transfers are being made for hospital bills or something similarly urgent, this isn’t usually possible. But for, say, school fees, speaking to the finance department and asking for a payment holiday could end up saving you lots of money in the long run if rates turn around.
What you need to send money
In order to complete the transaction, you will need the name and banking details of the recipient, the amount you are sending and currency that is being received. If the recipient does not have a bank account, there are other options such as Paypal. Or, if the recipient lives near a Western Union branch, they can even receive the payment in cash.
The amount of time taken for the money to be transferred into the recipient’s account depends on the method and service used, so if it is time-sensitive, looking for a money transfer provider that offers same-day transfers may be your best option.
When looking for money transfer services, be sure to check their minimum and maximum payment amounts too, as different providers will likely have varying limits.
Future payments
If you’re going to be sending regular payments to family abroad, you can save yourself time by going through a money transfer service that offers a repeat payment function. Doing so may also save you money, as services may offer a payment plan that is cheaper than manually making repeat payments: this will save you time and effort too.
When sending money overseas to family, a little bit of research goes a long way. By shopping around for a legitimate provider and also ensuring you don’t get stung by huge fees or bad exchange rates, you can send money abroad safely and cheaply. See more of our personal guides to money transfer abroad here.
